Audit report, Houston County Public Library, Perry, Georgia, year ended June 30, 1995

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT HOUSTON COUNTY PUBLIC LIBRARY
PERRY, GEORGIA YEAR ENDED JUNE 30, 1995

HOUSTON COUNTY PUBLIC LIBRARY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED STATEMENT OF ASSETS, LIABILITIES AND FUND EQUITY

ARISING FROM CASH TRANSACTIONS

ALLFUNDTYPES

B

COMBINED STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND

C

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

D

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E NOTES TO THE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

F

COMBINING STATEMENT OF ASSETS AND FUND EQUITY

ARISING FROM CASH TRANSACTIONS

G

COMBINING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

FIDUCIARY FUND TYPES

H

COMBINING STATEMENT OF ASSETS, LIABILITIES AND

FUND EQUITY ARISING FROM CASH TRANSACTIONS

I

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

SCHEDULES

1 CASH AND CASH EQUIVALENTS

SCHEDULE OF EXPENDITURES PAID BY OBJECT

2

GOVERNMENTAL FUND TYPES

3

LOTTERY PROGRAM

4 MEMBERSHIP OF LIBRARY BOARD

5 SCHEDULE OF SALARIES AND TRAVEL

Page
3 4 6 7 8
16 17 18 19
20
21
22
23 24

HOUSTON COUNTY PUBLIC LIBRARY - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTION ill PERTINENT VIEWS OF RESPONSIBLE OFFICIALS PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 19, 1996

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Director and Members ofthe Houston County Public Library Board
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the financial statements (Exhibits A through E) arising from cash transactions of the Houston County Public Library as of June 30, 1995, as listed in the table of contents. These financial statements are the responsibility of the Library's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1 to the Financial Statements, the Library's policy is to prepare its financial statements on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets and fund equity of the various funds arising from cash transactions of the Houston County Public Library as of June 30, 1995, and the revenues collected and expenditures paid during the year then ended, on the basis of accounting described in the Notes to Financial Statements.

95ARL-47

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The combining and individual fund statements (Exhibits F through I) and the financial schedules (Schedules I through 5) are presented for purposes of additional analysis and are not a required part of the financial statements of the Houston County Public Library. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, the financial schedules are fairly presented in all material respects in relation to the financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
L~
Claude L. Vickers State Auditor
CLV:jy 95ARL-47

HOUSTON COUNTY PUBLIC LIBRARY - 1-

HOUSTON COUNTY PUBLIC LIBRARY COMBINED STATEMENT OF ASSETS, LIABILITIES AND FUND EQUITY
ARISING FROM CASH TRANSACTIONS ALL FUND TYPES JUNE 30, 1995

EXHIBIT "A"

ASSETS Cash and Cash Equivalents Investments Held by Trustee
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

55,185.62 $

0.00 $

43,230.57 $

74,200.74

TOTAL 98,416.19 74,200.74

$

55,185.62 $

0.00 $

117,431.31 $

172,616.93

LIABILITIES AND FUND EQUITY

LIABILITIES

Deferred Compensation Plan

FUND EQUITY

Reserved

For Purchase of Library Books

and Materials

$

For Endowment Corpus

6,486.17

$

6,486.17

Unreserved Undesignated

48,699.45 $

Total Fund Equity

$

55,185.62 $

Total Liabilities and Fund Equity

$

55,185.62 $

$

74,200.74 $

74,200.74

$ $
0.00
0.00 $

$
27,901.60
27,901.60 $
15,328.97
43,230.57 $

6,486.17 27,901.60 34,387.77
64,028.42 98,416.19

0.00 $

117,431.31 $

172,616.93

The notes to the financial statements are an integral part of this statement. -3-

HOUSTON COUNTY PUBLIC LIBRARY COMBINED STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30.1995

EXHIBITB

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

CASH RECl;IPTS

REVENUES COLLECTED

STATE FUNDS

Education, Georgia Department of

Public Libraries Salaries and Travel

$ 145,842.73

$ 145,842.73

s

Library Materials

56,223.00

56,223.00

Maintenance and Operations

56,223.00

56,223.00

Lottery Program

Distant Leaming Satellite Dishes

$

577.80

577.80

$

FEDERAL FUNDS Education, Georgia Department of Federal Program Library Services and Construction Act ritle I Public Library Services

LOCAL AND OTHER FUNDS

Board of Education

Houston County

$

Book Fair

City Govemments

Centerville

Perry

Warner Robins

Copier Fees

County Government

Houston

Donations

Fines

Interest Received

Lost Books

Other

2581288.73 $
$
1,200.00 3,035.08
13,754.60 41,463.72 178,550.72 12,288.01
134,722.00 5,254.99 19,453.74 2,828.20 2,458.57 495.00

577.80 $ 258.866.53

141000.00 s

14.000.00

$

1,200.00

3,035.08

13,754.60 41,463.72 178,550.72 12,288.01

134,722.00 5,254.99 19,453.74 2,828.20 $ 2,458.57 495.00

$ $ $
630.35

Total Local and Other Funds Total cash Receipts

$ 415.504.63 $ 673,793.36 $

$ 14,577.80 $

415.504.63 $ 688,371.16 $

630.35 $ 630.35 $

CASH BALANCE JULY 1. 1994

73,573.86

1,738.85

75,312.71

14,698.62

TOTAL
145,842.73 56,223.00 56,223.00
577.80 258.866.53
14.000.00
1,200.00 3,035.08 13,754.60 41,463.72 178,550.72 12,288.01 134,722.00 5,254.99 19,453.74 3,458.55 2,458.57
495.00 416.134.98 689,001.51
90,011.33

$ 7471367.22 $

16.316.65 $ 763.683.87 $

15.328.97 $

n 9 1012.84

The notes to the financial statements are an integral part of this statement. -4-

HOUSTON COUNTY PUBLIC LIBRARY COMBINED STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
YEAR ENDED JUNE 30 1995

EXHIBITB

DISBURSEMENTS
EXPENDITURES PAID
Current
Program Services
Technical Services Circulation
Administration Maintenance and Operations
Total Disbursements
CASH BALANCE JUNE 30, 1995

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTAL

$ 249,649.45 $ 19,299.01
124,976.56 125,157.65 1731098.93
$ 692,181.60 $
55,185.62

2,036.05 $
141280.60 16,316.65 $
0.00

251,685.50 19,299.01
124,976.56 125,157.65 1871379.53
708,498.25
55,185.62 $

$
$ 15,328.97

251,685.50 19,299.01
124,976.56 125,157.65 1871379.53
708,498.25
70,514.59

$ 7471367.22 $

161316.65 $ 7631683.87 $

151328.97 $ n91012.84

The notes to the financial statements are an integral part of this statement. -5-

HOUSTON COUNTY PUBLIC LIBRARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1995

EXHIBITc

CASH RECEIPTS
REVENUES COLLECTED State Funds Federal Funds Local and Other Funds
Total Cash Receipts
CASH BALANCE JULY 1, 1994

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 258,647.53 $ 378,491.72
$ 637,139.25 $ 114,594.33

258,288.73 415,504.63 673,793.36 73,573.86

$ 751,733.58 $ 747,367.22

$

0.00 $

sn.8/J

14,000.00

$

0.00 $ 14,5n.8/J

1,738.85

1,738.85

$

1,738.85 $ 16,316.65

DISBURSEMENTS
EXPENDITURES PAID Current Program Services Technical Services Circulation Administration Maintenance and Operations
Total Disbursements
CASH BALANCE JUNE 30, 1995

$ 81,816.00 $
12,850.00 559,586.26 $ 654,252.26 $
97,481.32

249,649.45 19,299.01
124,976.56 125,157.65 173,098.93
692,181.60
55,185.62

$ 751,733.58 $ 747,367.22

$

0.00 $

2,036.05

14,28/J.60

$

0.00 $ 16,316.65

1,738.85

0.00

$

1,738.85 $ 16,316.65

The notes to the financial statements are an integral part of this statement. -6-

HOUSTON COUNTY PUBLIC LIBRARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30, 1995

EXHIBIT"D"

CASH RECEIPTS
REVENUES COLLECTED Other Funds Interest Earned
Total Cash Receipts
CASH BALANCE JULY 1. 1994

NOLA BRANTLEY MEMORIAL
LIBRARY FUND

$ ------1,-06-2-.2-0

$

1,062.20

26,839.40

DISBURSEMENTS
EXPENDITURES PAID None Recorded
CASH BALANCE JUNE 30, 1995

$ =====2=7,=90=1=.6=0

$

0.00

27,901.60

$ = = =2=7,9=01.6=0

The notes to the financial statements are an integral part of this statement. -7-

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "E"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Houston County Public Library operates pursuant to Official Code of Georgia Annotated Sections 20-540 through 20-5-59 to provide public library services with costs shared by participating local governmental agencies and grants from the State of Georgia.
The more significant ofthe Library's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". Based upon the application ofthe above criteria, the Houston County Public Library is determined to be a joint venture.
The Library Board consists of 12 members; three members appointed by the Houston County Board of Commissions, three members appointed by the Centerville City Council, three members appointed by the Perry City Council and three members appointed by the Warner Robins City Council. The Board is without authority to determine the amount of its funding, except by submission ofbudget requests to local governmental units from which the Library receives support and to the State of Georgia for State and Federal funding. Membership in the Library and participation in library services is at the discretion of each participating governmental agency. The Board has the power to designate management, the power to retain unreserved fund balances oflocal funds for continued operations and is the lowest level of oversight responsibility for the Library's operations.
The Houston County Public Library is located in Perry, Georgia, and serves Houston County with the main Library located in Perry, Georgia.
FUND ACCOUNTING
The Library uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets which includes the Library's inexhaustible collections and books, are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Library.
The financial statements account for all State, Federal, Local and Other funds under control of the Library, unless otherwise disclosed in these notes. Funds presented in this report are as follows:

- 8-

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "E"

Note I: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
GOVERNMENTAL FUND TYPES - used to account for all or most of the Library's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Library except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a Library.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The primary type of special revenue fund consists of proceeds received from State and Federal sources to accomplish specific objectives and are required to be accounted for separately.
FIDUCIARY FUND TYPES - the trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLE TRUST FUND Nola Brantley Memorial Library Fund -the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used for Library operations.
EXPENDABLE TRUST FUND Self-Insured Employee Benefit Fund - the fund used to account for Unemployment Compensation Insurance contributions and expenditures.
AGENCY FUND - the fund used to account for assets held by a third party for employees contributing into an I.RS. 457 Deferred Compensation Plan.
BASIS OF ACCOUNTING
The Houston County Public Library maintains its financial statements in accordance with a comprehensive basis of accounting called the Cash Receipts and Disbursements basis of accounting, which differs from generally accepted accounting principles applicable to governmental entities. This Cash Receipts and Disbursement basis of accounting is defined as that method of accounting in which certain revenue and the related assets are recognized when received rather than when earned, and certain expenditures are recognized when paid rather than when the obligation is incurred.
BUDGET
The Houston County Public Library's budget is a complete financial plan for the Library's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is
- 9-

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXI-IlBIT "E"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
prepared by fund, function, and object. The legal level ofbudget control was established by the Library at the aggregate level. The Library prepares its budget on the cash receipts and disbursement basis which is the same basis on which it presents its financial statements.
The budget process begins when the Library's administration prepares a tentative aggregated budget for the Board's approval. After approval ofthis tentative budget by the Board, copies are sent to all local funding agencies. After funding approval is received from all local funding agencies, the Board makes revisions as necessary and adopts the budget. The budget is then submitted to the Georgia Department of Education, Division ofPublic Library Services as a part of the Library's annual application for state aid. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and a N.O.W. account) in authorized financial institutions. Georgia Laws authorize the Library to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS HELD BY TRUSTEE
Investments held by trustee consist of contributions from employees who have elected to participate in the Library's deferred compensation plan. See Note 6- Deferred Compensation Plan
INTERFUND TRANSACTIONS
The Library has the following type ofinterfund transactions:
Reimbunements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being

- 10 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "E"

Note 2: DEPOSITS AND INVESTMENTS
secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations ofthe United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1995, the bank balances were $126,839.52. The bank balances were entirely covered by Federal depository insurance.
CATEGORIZATION OF INVESTMENTS At June 30, 1995, the carrying amount of the Library's total investments was $74,200.74 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments.

- 11 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "E"

Note 3: RISK MANAGEMENT

The Library is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illnesses or injuries to employees; natural disaster; and unemployment compensation.

The Library has obtained commercial insurance for risk of loss associated with torts, assets and job related illness or injuries to employees. The Library has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Library's insurance coverage in any ofthe past three years.

The Library has elected to self-insure for all losses related to errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Library has not experienced any losses related to errors or omissions in the past three years.

The Library has elected to self-insure for all losses related to natural disasters. The Library has not experienced any losses related to natural disasters in the past three years.

The Library is self-insured with regard to unemployment compensation claims. Estimated claims are budgeted by management based upon experience. During fiscal year 1994 and 1995, no claims were paid.

Note 4: OPERATING LEASES

The Library has committed under various leases for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1995, amounted to $6,597.72. Future minimum lease payments for these leases are as follows:

Year Ending 1996 1997 1998 1999 Total
Note 5: CONTINGENT LIABILITIES

Amount $ 6,597.72
6,597.72 5,539.20 1,384.80 $ 2Q 119 44

Amounts received principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Library believes that such disallowances, if any, will be immaterial to its overall financial position.

- 12 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "E"

Note 6 : DEFERRED COMPENSATION PLAN
The Library offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Library employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.
All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Library (without being restricted to the provisions ofbenefits under the plan), subject only to the claims ofthe Library's general creditors. Participants' rights under the plan are equal to those ofgeneral creditors ofthe Library in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion ofthe Library that the Library has no liability for losses under the plan but does have the duty ofdue care that would be required of an ordinary prudent investor. The Library believes it is unlikely that it will use the assets to satisfy the claims ofgeneral creditors in the future.
Investments are managed by the plan's trustee, Lincoln National Sales Corporation of Georgia. Under this plan, participants select from an investment option, or a combination ofinvestment options, determined by the Library.
Note 7: ACCUMULATED EMPLOYEES' LEAVE
Employees earn annual leave ranging from five-sixths to one and two third days each month depending upon the employees' length ofcontinuous service with maximum accumulation of thirty days. Employees are paid, at their current rate of pay, a maximum often days for unused accumulated annual leave upon retirement or termination of employment.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION All full-time librarians and clerical personnel employed by regional and county libraries are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).
TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. A member is eligible for service retirement after 30 years of service, regardless of age, or after 10 years ofservice and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the
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HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "E"

Note 8: RETIREMENT PLANS
nwnber ofyears of creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include disability and death benefits. A disabled member or surviving spouse is
entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement,
whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of 10 years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employee contributions occurs, but the member's contributions are refunded with interest.
The Library's payroll for employees covered by TRS for the year ended June 30, 1995, was $329,592.40; total payroll was $359,262.83.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Library who are covered by TRS are required by State statute to pay 5% of their gross earnings to TRS. The Library makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. At June 30, 1995, the TRS Library employer contribution rate was 11.81%. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1995 amounted to $55,404.13, of which $38,924.67 was made by the Library and $16,479.46 was made by employees. These contributions represented 11.81% (Library) and 5% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accwnulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.

- 14 -

HOUSTON COUNTY PUBLIC LIBRARY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "E"

Note 8: RETIREMENT PLANS

Total unfunded pension benefit obligation ofTRS as of June 30, 1994, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1 058 958,000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1995, were $565,117,811.00. The Library's contribution for the year ended June 30, 1995, of $38,924.67 was actuarially determined and represented .0069/c, of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1995 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

Note 9: SURETY BONDS

The employees ofthe Houston County Public Library are bonded under a Public Employees Blanket Bond in the amount of$50,000.00 with The United States Fidelity and Guaranty Company, Baltimore, Maryland, their Bond No. CCR 02-0080-10364-92-7, on which premium was paid to March 7, 1996.

- 15 -

HOUSTON COUNTY PUBLIC LIBRARY COMBINING STATEMENT OF ASSETS AND FUND EQUITY
ARISING FROM CASH TRANSACTIONS SPECIAL REVENUE FUND JUNE 30, 1995

EXHIBIT"F"

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Unreserved Undesignated

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT TITLE I PUBLIC LIBRARY SERVICES

TOTAL

$

0.00 $

0.00 $

0.00

=====

$

0.00 $

0.00 $

0.00

=====

See notes to the financial statements.

- 16-

HOUSTON COUNTY PUBLIC LIBRARY COMBINING STATEMENT OF CASH RECEIPTS ANO DISBURSEMENTS
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1995

CASH RECEIPTS
REVENUES COLLECTED State Funds Federal Funds
Total Cash Receipts
CASH BALANCE JULY 1, 1994

LOTTERY PROGRAM

LIBRARY SERVICES AND CONSTRUCTION
ACT TITLE 1 PUBLIC LIBRARY SERVICES

TOTAL

$

577.80

$

$

577.80 $

0.00

$
14,000.00
14,000.00 $
1,738.85

577.80 14,000.00
14,577.80
1,738.85

$

577.80 $

15,738.85 $ 16,316.65

DISBURSEMENTS
EXPENDITURES PAID Current Program Services Maintenance and Operations
Total Disbursements
CASH BALANCE JUNE 30, 1995

$

297.20 $

280.60

$

577.80 $

0.00

1,738.85 $
14,000.00
15,738.85 $
0.00

2,036.05 14,280.60
16,316.65
0.00

$

577.80 $

15,738.85 $ 16,316.65

See notes to the financial statements.

-17 -

HOUSTON COUNTY PUBLIC LIBRARY COMBINING STATEMENT OF ASSETS. LIABILITIES AND FUND EQUITY
ARISING FROM CASH TRANSACTIONS FIDUCIARY FUND TYPES
JUNE 30. 1995

EXHIBITw

ASSETS cash and Cash Equivalents lnveatments Held by Trustee
Total Assets

NONEXPENDABLE
TRUST FUND NOLA BRANTLEY MEMORIAL LIBRARY FUND

EXPENDABLE TRUST FUND SELF-INSURED EMPLOYEE BENEFIT FUND UNEMPLOYMENT COMPENSATION
FUND

AGENCY FUND
DEFERRED COMPENSATION
PLAN

$

27,901.60 $

15,328.97

$

$

741200.74

TOTAL 43,230.57 741200.74

$

27,901.60 $

15,328.97 $

74 200.74 $ _ _ _1_17........._43_1,_.3.,.1

LIABILITIES AND FUND EQUITY

LIABILITIES Deferred Compensation Plan

FUND EQUITY

Fund Balances

Reserved

For EndaNment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

27,901.60 0.00 $
271901.60 $

Total Liabilities and Fund Equity

$

27,901.60 $

$

74 200.74 $ _ _ _ _74_._200_.7_4

$

27,901.60

151328.97 $ _ _ _ _ _0_.00_

151328.97

151328.97 $

0.00 $ _ _ _--'43-"'1=230~.57---

15,328.97 $

74,200.74 $ _ _ _1_1_7_43_1_.3_1

See notes to the financial statements.

-18-

HOUSTON COUNTY PUBLIC LIBRARY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"!"

DEFERRED COMPENSATION PLAN ASSETS
Investments Held by Trustee
LIABILITIES Deferred Compensation Plan

BALANCE JULY 11 1994

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1995

$

68,115.02 $

6,085.72 $

0.00 $ ====7=4=,2=0=0.=74=

$

68,115.02 $

6,085.72 $

0.00 $ =====7=4=,=2=0=0=.7=4=

See notes to the financial statements.

- 19 -

HOUSTON COUNTY PUBLIC LIBRARY CASH AND CASH EQUIVALENTS JUNE 30, 1995
INTEREST BEARING ACCOUNTS
Bank South, Perry, Georgia
N.O.W. Account (Variable)
CB&T Bank of Middle Georgia, Warner Robins, Georgia
Certificate of Deposit No. 11260 (5.65%)
Crossroads Bank of Georgia, Perry, Georgia
Certificate of Deposit No. 3028 (6.12%)

SCHEDULE "1"
$ 55,185.62 27,901.60 15,328.97
$ 98,416.19

See notes to the financial statements.

- 20 -

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF EXPENDITURES PAID BY OBJECT
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

SCHEDULE "2"

DISBURSEMENTS
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Property Services Supplies Library Books and Materials utilities Communications and Insurance Dues and Fees
Nonoperating Costs Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 359,262.83 73,269.25 2,366.25 32.33 45,614.24 19,814.19 116,428.67 $ 48,192.75 16,919.09 640.00

$ 1,738.85

359,262.83 73,269.25 2,366.25 32.33 45,614.24 19,814.19
118,167.52 48,192.75 16,919.09 640.00

9,642.00

14,577.80

24,219.80

$ 692,181.60 $ 16,316.65 $ 708,498.25

See notes to the financial statements.

- 21 -

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF EXPENDITURES PAID BY OBJECT
LOTTERY PROGRAM YEAR ENDED JUNE 30, 1995

SCHEDULE "3"

DISBURSEMENTS
Nonoperating Costs Equipment

DISTANT LEARNING SATELLITE
DISHES

----- $

577.80

See notes to the financial statements.

- 22 -

HOUSTON COUNJY PUBLIC LIBRARY
MEMBERSHIP OF LIBRARY BOARD
YEAR ENDED JUNE 30. 1995

BOARD MEMBER ADDRESS
Ms. Jane Gramley. Chairperson(*) 322 Clairmont Drive Warner Robins, Georgia 31088
Ms. Vanna Brown (*) P. 0. Box 1623 Perry, Georgia 31069
Mr. Dave Ellis (*) 106 Sunset Drive Warner Robins, Georgia 31088
Mr. James Esterbrook, Jr. P. 0. Box94 Bonaire, Georgia 31005
Mr. Mike Gray(*) P. 0. Box 1234 Perry, Georgia 31069
Ms. Linda Loewen P. 0. Box226 Perry, Georgia 31069
Mr. Ray Mims (*) 1604 Marshall Drive Perry, Georgia 31069
Ms. Claudine Murray(*) 264 Valencia Drive Centerville, Georgia 31028
Ms. Olene Murray (*) 236 Valencia Drive Centerville, Georgia 31028
Ms. Jane Perfect (*) 105 Perfect Road Elko, Georgia 31025
Ms. Carolyn Robbins (*) 413 Westwood Drive Warner Robins, Georgia 31088
Ms. Dottie Stafford (*) 203 Davis Drive Centerville, Georgia 31028
Ms. Marian Walker (*) 115 Hickory Warner Robins, Georgia 31093
Ms. Frances Worrall (*) P. 0. Box68 Perry, Georgia 31069
(*) Denotes Board Members Serving as of June 30, 1995
See notes to the financial statements.

- 23 -

SCHEDULE "4"

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE "5"

PERSONNEL

Beck,
Bush,
Copeland, CUmmins, Drennan, Efford, Faircloth, Fuller, Golden, Granger, Green, Hannon, Hickey, HiU, Houston, Howard, Klee, Kuder, Laster, Lawrence, MacDonald, Merk, Northern, Parker, Powell, Rhodes, Robinson, Sayre, Summers, Trost, Tucker, Tucker, Wallace, Waterman, Wheeler, Yeatman,

Sarah Isabelle R. Thalmus Sheila Y. SueAm Kimberly M. Ruth E. Vivian J. Judith A. Nancy A. Sallie Jacqueline F. Nathan A. Sherika Clarence, Jr. Teri L. DorothyJ. RosemaryE. Katharine R. Mary Jo Valrae P.Evelyn Dorothy A. Rebecca E. RodneyN. WilliamH. Amy JanetC. Joanne B. JodyS. Margaret Susan Hoza Mary A. Alma C. Rebecca

Total Cash Basis See notes to the financial statements.

POSITION
Page Branch Manager Page Reference Librarian Library Clerk Page Library Clerk Bookkeeper Director Head Librarian Library Clerk Library Clerk Page Page Page Page Library Clerk Children's Specialist Library Clerk Library Clerk Library Clerk Head Librarian Library Clerk Page Library Clerk Page Page Technical Services Library Clerk Library Clerk Library Clerk Library Clerk Maintenance Maintenance Maintenance Children's Specialist

SALARIES

TRAVEL

$

59.50

13,860.26 $

2,448.94

28,556.74

5,262.05

1,721.25

10,798.74

19,977.45

50,212.04

37,796.40

5,820.12

9,347.00

2,284.40

2,326.89

2,444.84

340.00

10,798.74

13,706.33

4,168.40

898.88

6,062.80

40,697.60

10,798.74

971.13

10,798.74

257.13

1,285.63

13,498.25

10,798.74

4,521.01

10,798.74

1,207.00

5,276.89

2,036.26

7,318.69

10,106.51

63.31
156.41 125.16 750.05
63.00 131.31
129.33 805.16
54.69 77.06
10.77

$

359,262.83 $ =======2=,3=6==6==.2=5

-24-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

HOUSTON COUNTY PUBLIC LIBRARY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6762-93-01
The audit report for the year ended June 30, 1994, stated that the Library did not provide for adequate separation of employee duties in the performance of accounting functions and related procedures. For the year under review, our audit noted no improvement regarding adequate separation of employee duties.
This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6762-93-02
The audit report for the year ended June 30, 1994, noted that the Library did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the financial statements of the Houston County Public Library being incomplete. In the year under review, no action was taken by the Library to establish accounting controls and procedures to implement and maintain a General Fixed Assets Account Group for inclusion in the accounting records. Subsidiary records should be established for land, buildings, equipment and inexhaustible books and collections owned by the Library. Detailed records should be maintained of all additions and deletions for each class of fixed assets that comprise this account group.

SECTION III PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

HOUSTON COUNTY PUBLIC LIBRARY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS
YEAR ENDED JUNE 30, 1995
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Audit Control Number 6762-93-01
We concur with this finding; however, due to current budgetary constraints, the Board is unable to hire the
additional staff required to clear this finding. The Board feels it has provided for the most appropriate
assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations, this finding cannot be totally resolved.
- GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Audit Control Number 6762-93-02
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring of administrative staff and the fact that the Genesis computer package has no software available for this type program, the Board has decided not to pursue the recording of general fixed assets on the financial statements.